ASSESSMENT OF THE POSSIBILITY OF A MIDDLE-INCOME TRAP IN TURKEY

Ali Cem ÖZTÜRK; Burcu YAVUZ TİFTİKÇİGİL

doi:10.15637/jlecon.7.025

Authors

Ali Cem ÖZTÜRK https://orcid.org/0000-0002-8326-4540
Burcu YAVUZ TİFTİKÇİGİL İstanbul Medipol Üniversitesi/TÜRKİYE https://orcid.org/0000-0001-7422-6086

DOI:

https://doi.org/10.15637/jlecon.7.025

Keywords:

Middle-income Trap, Turkey's Middle-income Trap disposition, Robertson and Ye Approach

Abstract

Turkey has been under the middle-income country category according to the income category classification of the World Bank. Turkey promoted to high-middle-income group in 2005 after spending more than 50 years in lower-middle-income group. The purpose of this study is to identify the presence of middle-income trap in Turkey. The study brings together the most recent theoretical studies from different perspectives with respect to the presence of MIT in Turkey along with Robertson and Ye approach in the empirical phase. Within the context of this study, structural break unit root test using current data obtained through the Atlas method is applied in order to evaluate Turkey’s middle-income trap status. The GNI per capita Atlas Method (current US $) data of the World Bank for the years 1967-2016 are used in the study. The empirical analysis briefly showed that Turkey is not in the MIT.

Jel Codes: D31, C40, E01, O500, O470, C22

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